Leading memory chipmaker SK hynix announced Wednesday its strategic move to list American Depositary Receipts (ADRs) on the Nasdaq Stock Market by July 10. This initiative aims to raise a substantial 45.5 trillion won ($33 billion) to fuel the significant expansion of its artificial intelligence (AI) chip production capabilities.
The Korean semiconductor giant confirmed its board’s approval for issuing ADRs, backed by newly issued common shares. Proceeds are earmarked for critical semiconductor initiatives essential for its AI growth strategy, including the inaugural fabrication plant at the cutting-edge Yongin semiconductor cluster, the P&T7 advanced packaging facility in Cheongju, and further investments in vital chip equipment and infrastructure.
Under the comprehensive plan, SK hynix will issue up to 17.79 million new common shares, representing approximately 2.5 percent of its outstanding shares, through a third-party allotment to an overseas depositary institution. This institution will then issue ADRs backed by these shares, making them available for sale to overseas institutional investors.
The maximum fundraising target is set at 45.45 trillion won. The final offering size and price will be precisely determined through a bookbuilding process, subject to investor demand and prevailing market conditions.
The company is preparing to file a securities registration statement in Korea and a comprehensive Form F-1 registration statement with the US Securities and Exchange Commission.
Institutional bookbuilding is scheduled to commence on July 7, following the effectiveness of the registration statement. Pricing, underwriting agreements, and the anticipated Nasdaq debut are all expected to occur on July 10, with settlement of the ADRs slated for July 14.
American Depositary Receipts (ADRs) are globally recognized US-listed securities that enable foreign companies like SK hynix to tap into US capital markets. They allow American investors convenient access to invest in international stocks without directly trading on overseas exchanges. This widely adopted mechanism is already utilized by major semiconductor industry players, including TSMC and ASML, for their US market presence.
“Through this ADR listing, we expect to diversify our investor base significantly and achieve a valuation that more accurately reflects our true corporate value,” an SK hynix official stated.
“We are committed to further strengthening our position as a global technology leader by expanding our crucial presence in the US, which stands as the epicenter of AI innovation.”
